For Immediate Release
Chicago, IL – March 13, 2019– Stocks in this week’s article include Sallie Mae SLM, United Continental Holdings, Inc. UAL, Celgene Corp. CELG and Ligand Pharmaceuticals Inc. LGND. Kevin Matras screens for companies showing their 'first' profit and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
4 High Earnings Yield Stocks to Strengthen Your Portfolio
If you are not sure whether to invest your money in bonds or stocks, an important parameter, which can show you the right direction, is earnings yield. It is the reciprocal of the price-to-earnings (P/E) ratio. This ratio can be effectively used for figuring out undervalued stocks. Also, this ratio is handy for comparing stocks with the market or fixed income securities.
Earnings yield can be calculated as (annual earnings per share/market price) x 100. While comparing similar stocks, the one with high earnings yield should provide higher returns.
This ratio is very useful for comparing the performance of the market with the 10-year Treasury yield. When the yield of the market index exceeds the 10-year Treasury yield, stocks can be said to be undervalued in comparison to bonds. This implies that investing in the stock market is a better choice for a value investor.
However, while T-bills are free of risks, investing in stocks always carries some inherent risks. Hence, it will be wise to add a risk premium to the Treasury yield while comparing with the earnings yield of a stock or the broader market.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/358920/4-high-earnings-yield-stocks-to-strengthen-your-portfolio
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United Continental Holdings, Inc. (UAL) : Free Stock Analysis Report
SLM Corporation (SLM) : Free Stock Analysis Report
Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report
Celgene Corporation (CELG) : Free Stock Analysis Report
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